United States

Metro to acquire the Jean Coutu Group Inc for $4.5 bln

Monday, 2 Oct 2017 06:00am EDT 

Oct 2 (Reuters) - Metro Inc : :Metro Inc to acquire the Jean Coutu Group (PJC) Inc for $4.5 billion.Metro Inc - ‍$75 million in expected synergies within three years from deal​.Metro Inc - ‍two jean coutu group nominees will join metro's board of directors​.Metro Inc - to buy all outstanding Jean Coutu class a subordinate voting shares, Jean Coutu group class B shares for $24.50/Jean Coutu Group share​.Metro Inc - ‍combined business will have an overall network of more than 1,300 stores in Canada​.Metro Inc - ‍under terms of transaction, Jean Coutu Group shareholders to get consideration which will consist 75% in cash, 25% in Metro common shares​.Metro Inc - ‍combination expected to be accretive to metro eps (adjusted for intangible amortization from combination) and to free cash flow per share​.Metro - ‍jean Coutu shareholders to get either $24.50 in cash or 0.61006 share of co for each Jean Coutu share held, subject in each case to pro ration​.Metro Inc - ‍metro intends to reduce committed bank facilities through permanent financing and sale of certain assets​.Metro inc - ‍giving full effect to pro ration, consideration of each jean coutu group share represents $18.38 in cash and 0.15251 common share of metro​.Metro inc - ‍termination fee of $135 million payable to metro in certain circumstances​.Metro inc - ‍metro has access to aggregate committed bank facilities of $3.4 billion to finance cash portion of transaction consideration​.